The Providence Journal

The latest unemployment numbers are awful. U.S. job losses accelerated in the last two months, pushing the nation’s unemployment rate to a 14-year high in October. As workers lose their jobs, a crucial benefit they must keep is their health insurance. Don’t go without this.

It may be tough to pay the premium while you search for a new job, but you’ll really be in a world of hurt if a major illness or accident wipes out what funds you have. “If you think losing your job is a possibility in the next year, start reviewing your employer health-care plans now,” said Sam Gibbs, a senior vice president and consumer expert with eHealth Insurance.com, a health-insurance information Web site.

“During open enrollment [when you select benefits for the coming year], you may be able to choose a plan that would cost less if you were later required to pay all of the premium through COBRA,” he said. “Always make sure that the plan you choose will cover the health-care benefits you need for the coming year.”

It’s important to understand what COBRA is because it plays a major role in your health insurance if you’re laid off.

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1986. The federal law requires employers that lay off workers to offer them a chance to continue with the employer’s health insurance policy for 18 months after leaving their jobs.

However, you will have to pay the monthly premium — and it’s expensive because you’re paying both the employee and employer contributions.

The average monthly COBRA premium is $400 for an individual and $1,078 for a family, according to eHealthInsurance.com.

It may be tempting to go without health insurance and save the expense, but that would be a mistake. Instead, take the COBRA coverage and shop around for less-expensive coverage that still meets your needs.

“If you are considering switching your health-insurance plans, never switch from an employer-based plan or COBRA continuation coverage until you are approved for another plan,” Gibbs said. “It is important to have no interruption in your health-insurance coverage.”

If you’re healthy, you may qualify for an individual or family health policy.

If your health isn’t so good, you may still qualify for an individual or family plan — but you may have to pay a higher premium. Talk to at least two insurance agents to find out whether you qualify.

You might also consider raising your deductible to save on the premium.

“If you’re healthy and don’t need to see your doctor a lot, go with a higher deductible unless you are anticipating expensive procedures like a surgery or childbirth, or other medical expenses within the year,” Gibbs said.

If you’ve already been laid off, see if you can get on your spouse’s health-insurance plan. An uncertain employment situation calls for cutting out unnecessary expenditures, but health insurance isn’t one of them.

Author: Pamela Yip,  is a personal finance writer for The Dallas Morning News and can be e-mailed at pyip@dallasnews.com.

Posted: Sunday, November 16, 2008

Source: The Providence Journal

Link: http://www.projo.com/business/content/BZ_yip16_11-16-08_2CC8DCF_v6.3f113b0.html

Online Health Insurance Quotes and Applications

If you are a US resident you can find an excellent resource for your research by visiting  Nirvana Insurance Services (Health Insurance) which offers online quotes and applications.